RBI Governor Sanjay Malhotra said in the Monetary Policy Committee meeting, the “MPC met on 5th, 6th, and today, 7th.” Global economic backdrop is challenging, it uncertain. Indian economy is strong and resilient, but not immune to global winds.
Malhotra said, “We will strike the right balance keeping in view benefits and costs of regulations”. After a detailed assessment, MPC decided unanimously to reduce policy rate by 25 bps from 6.5 % to 6.25 %. SDF rate 0.6 % and bank rate is 6.5 %. “Economic interest requires increasing efficiency in the economy”, he added. It was made in 2016, and reviewed again 2021. It has served the Indian economy very well, including the pandemic.
The governor said, the average inflation is lower since the framework, including the CPI numbers. “We will continue to refine the framework, by using new data”, the Governor said. Real GDP is at 6.4 %, against a robust 8.2 % growth earlier. The governor said, “Economic activities are expected to gear pace”.
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